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Amazon to Collect California Sales Tax

Starting September 15 Californians and Pennsylvanians will have to start paying sales tax on Amazon purchases

Listen up Amazon junkies. Starting September 15, Amazon purchases are about to get a whole lot more expensive for customers living in California and Pennsylvania. That’s because Amazon has agreed to start collecting sales tax for these two states.

This means that you better bulk up on online goods now if you want to save money.

For shoppers in these states, sales tax amounts to no inconsiderable sum. Californians pay somewhere in the neighborhood of 7.25% – 9.75% of sales tax on purchases. Pennsylvania residents, in contrast pay about 8% in sales tax.

One of Amazon’s great advantages over its brick and mortar competitors used to be its lack of sales tax, which made its goods considerably cheaper. It used to pay sales tax only in the states where it had a physical presence, such as a distribution warehouse. But over the last few years, the trend has been a new willingness on the part of Amazon to cut deals with states and start collecting sales tax. Continue reading “Amazon to Collect California Sales Tax”

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A Number of Income Tax Deductions and Credits Set to Expire

You can save money on your 2011 taxes with these soon-to-be-extinct tax breaks!

Think it’s too late to save on your 2011 taxes? Think again! Here are six deductions and tax credits that will be gone by the end of the year:

  • Energy Efficiency Tax Credit

Making energy-efficient upgrades to your home isn’t just a great way to cut down on heating and cooling costs, it can get you a tax credit too.

If you add more insulation to your attic or buy an energy-efficient appliance, among other possible improvements, you can apply for a tax credit. For a full list of qualifying improvements, refer to the Energy Star website.

The tax credit is worth 10% of the cost of these improvements.

But note that there is a $500 lifetime limit on this credit, so if you’ve taken advantage in previous years, you may not be able to do so again.

Congress has made some changes to the rules governing these credits for 2011. Go here for a full summary of the changes. Continue reading “A Number of Income Tax Deductions and Credits Set to Expire”

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Can I File State Income Taxes Online?

The IRS, in a shockingly forward facing-move, began the switch from paper forms to e-file years ago. This move is incredibly savvy on their part–it makes sure that people who aren’t inclined to do forms can still file their taxes (thus increasing the money they get) and it makes processing a lot easier for them. Win-win. Unfortunately, it’s a lot harder to file state income taxes online.

Harder, but not impossible, of course. Here are some ways you can do it: Continue reading “Can I File State Income Taxes Online?”